2017 National Mutual Economy Report Incorporating the Top 100 2 | 2017 National Mutual Economy Report | 2017 Report Partner
3 | 2017 National Mutual Economy Report | 2017 National Mutual Economy Report Incorporating the Top 100 Providing the latest research on the economic and social contribution of Australia’s co-operative, mutual and member-owned firms.
With the research collaboration of the University of Western Australia
For more information on the co-operative and mutual sector i www.bccm.coop www.getmutual.coop
Published November 2017 by the Business Council of Co-operatives and Mutuals (BCCM) | GPO Box 5166, Wynyard, Sydney 2001 | www.bccm.coop © Business Council of Co-operatives and Mutuals (BCCM)
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4 | 2017 National Mutual Economy Report | About the BCCM Despite representing some of the largest businesses The Business Council of Co‑operatives and Mutuals in their sectors and being found across a wide- (BCCM) is the national peak body representing range of industries, the overall size, structure co‑operative and mutual models of enterprise. It is and contribution of the CME sector in Australia the only organisation uniting the entire and diverse is relatively poorly understood. This is due to a range of member-owned businesses in Australia. paucity of reliable data, difficulties in definition and vagueness over which firms should be identified as Formed in 2013, the BCCM brings together the sector CMEs. of businesses owned by members or formed to benefit members, with the common objective of For this year’s report on the ACMEI, see Mazzarol, T. increasing awareness of these models of enterprise. & Kresling, J. (2017), Australia’s Leading Co-operative and Mutual Enterprises in 2017, CEMI Discussion Through our members, the Council highlights the Paper Series, DP 1701, Centre for Entrepreneurial contribution co‑operatives and mutuals make to Management and Innovation. the national economy and social development in Australia. The BCCM provides leadership in the All financial statistics presented in this report are important areas of research, education and advocacy in AU dollars unless otherwise indicated. to build a strong sector. Acknowledgements About the report 2017 National Mutual Economy Report (NME 2017) was This is the fourth annual report on the scale and produced thanks to sponsorship by HCF, research by performance of the Australian co‑operative and the University of Western Australia and the input of a mutual sector. The report aims to map the size, number of CMEs and other researchers. composition and overall health of the co‑operative From the University of Western Australia we’d like to and mutual sector using the Australian Co‑operative thank Professor Tim Mazzarol, Dr Elena Limnios and and Mutual Enterprise Index (ACMEI), which started Johannes Kresling. in 2012 with the first national data collection For their work on this year’s NME we would also like process in 2014. to acknowledge Chris Mason, Next Level Research; The ACMEI is a long term research project undertaken Tony Connon; and Duncan Wallace. by the University of Western Australia to map the We thank Professor Morris Altman, Dean and Head of size and structure of the co‑operative and mutual University of Newcastle Business School, for his work enterprise (CME) sector in Australia. Its purpose is to using economic modelling to provide our Total Value provide a better understanding of these businesses Added and employment statistics. and their contribution to the national economy.
5 | 2017 National Mutual Economy Report | Executive Summary This is the fourth annual National Mutual Economy CMEs directly employ over 146,000 people, and are Report produced by the BCCM with the research important anchor institutions. The 2,135+ CMEs in collaboration of the University of Western Australia. Australia provide core business support to over 174,000 businesses, mostly small and medium This year’s report is an example of the successful enterprises. In many cases businesses are dependent co-operative research effort undertaken by BCCM on the services provided by their CME for their and various stakeholders to accurately measure the viability. Co-operative and Mutual Enterprise (CME) sector. NME 2017 was produced thanks to sponsorship by HCF Nevertheless, the CME sector remains the ‘ninja’ and the important collaboration of Australia’s co- economy, hiding in plain sight. operative and mutual enterprises. While 85% of Australian adults are members of at The current economy is not working for many people. least one CME, the majority don’t know they are - a Financial stress is on the rise with less than a third of recent BCCM poll found that only 12% of Australians Australian adults financially secure in 2016 – a result know they are a member of a co-operative or mutual. of a doubling in household debt since 2003, in the This is despite CMEs playing an important role in main due to rising house prices. Social isolation is a mainstream Australian life. Over four million people growing concern, with 80% of Australians believing watched this year’s AFL Grand Final, perhaps without that loneliness is increasing. The mainstream realising that the majority of AFL clubs are owned business model is not helping. According to 82% of and run by their supporters, who are their members. Australian adults, corporations are too focused on profits, with 78% agreeing corporations put investor CMEs have an impact beyond merely financial interests before customer welfare. impact. How to measure that impact is something the CME sector is in the process of answering – how It’s time to reimagine the economy. do we adapt accounting methods to better show the The CME sector presents solutions. Member rather shared value CMEs create? In chapter 5 we show the than investor ownership, means members are put extensive member value CMEs create through the first, with long-term value for members maximised, case studies of the National Health Co-operative and rather than short-term profits for investors. Member the Rumbalara Aboriginal Co-operative. We thank control also means profits stay within the local these co-operatives for their time and insights. community, rather than leaking out. As this report shows, the CME sector is tried and tested. The total value added of the CME sector is $140 billion - 8.3% of GDP - and CME assets have Melina Morrison grown by 10.5% over a five-year period, with Chief Executive Officer turnover growing at 6.6%. Business Council of Co-operatives and Mutuals
6 | 2017 National Mutual Economy Report | Table of contents
Chapter 1 Reimagine the Economy Why Reimagine the Economy? 10 Explaining the Member Owned Difference 11
An Economy Undermined by Financial Stress, Social Exclusion and Corporate Failings 13
CMEs are Tackling Financial Stress 14 CMEs are Building Regional Economies 15 CMEs are Preparing for an Aging Australia 16 CMEs are Tackling Social Isolation and Inclusion 17 Chapter 2 Sector Snapshot 32 The Contribution of the CME Sector 20 Gross Revenue by Industry 22 Australia’s Top 100 CMEs in 2015-2016 23 The Financial Performance of the Top 100 CMEs 27 The Long Term Financial Performance of Member-Owned Superannuation Funds 28 Aboriginal and Torres Strait Islander CMEs 29 Chapter 3 Measuring the Value of CMEs 32 Investing in the Community 33 Enterprise Co-operatives: Accessible Aggregation for Australian Businesses 34 Chapter 4 Football in Focus 32 Football in Focus – Co-operatives by Another Name 38 What Does Membership Mean in the AFL? 40 Chapter 5 Case Studies - Primary Healthcare in the Spotlight 32 1. National Health Co-operative: Challenging the Status Quo 44 2. Rumbalara Aboriginal Cooperative: The Heart of the Community 49 Chapter 6 The Challenges in Researching CMEs 32 The Co-operative Research Challenge 58 How Many CMEs are There? The Statistical Challenge 60 What Value do CMEs Create? The Impact Challenge 62 Sector Initiatives to Tackle the Co-operative Research Challenge 63 Chapter 7 Tables and Data 32
7 | 2017 National Mutual Economy Report | Chapter 1 Reimagine the Economy Financial stress is on the rise With average household debt almost doubling since 2003-04 and income remaining stagnant since 2007.
Loneliness and isolation are widespread Due to a breakdown of community connectedness and well-being.
One solution is the member-owned business model The model offers member centred returns, long term thinking, and a community focus. Supporting member control means supporting community.
The model is proven With Australia’s co-operative and mutual enterprises (CMEs) already helping over 8 in 10 Australians, and driving 8% of the economy. Why reimagine the economy? The 2016 Census showed us Australia is undergoing Despite uninterrupted annual increases in GDP, significant change, with fundamental shifts in how Australian households are increasingly vulnerable to we live and work. This presents challenges for our economic shocks as housing is less affordable and society. The past decade has shown that economic wages stagnate. Building a more equitable Australia growth alone cannot deliver a wealthier and will require reimagining the economy, thinking healthier Australia. beyond business as usual.
“We should learn from co-ops. If we do, we can reshape our economy, reshape globalisation and who we and our children are. We can construct a world where the economy performs better for all.” Nobel Prize winning economist, Professor Joseph Stiglitz
10 | 2017 National Mutual Economy Report | Explaining the member owned difference Members first, democratic decision making, and a local focus.
Member Ownership
Members First Long Term Focus Local Ownership
Focus on Sustainable decision Representing the maximising value making not just for the community and for members. next quarter. re-investing in it.
11 | 2017 National Mutual Economy Report | Explaining the member-owned difference – using CME terminology A co-operative A member-owned business organisation Is an autonomous association of persons united Is owned and controlled by its members who voluntarily to meet their common economic, social are drawn from one (or more) of three types of and cultural needs and aspirations through a jointly- stakeholder – consumers, producers and employees – owned and democratically controlled enterprise.1 and whose benefits go mainly to these members.3
A mutual A co-operative or mutual enterprise (CME) Is a private company whose ownership base is made Is a member-owned organisation with five or more of its clients or policyholders. Mutuals are voluntary active members and one or more economic or social groups of persons (natural or legal) whose purpose is purposes. Governance is democratic and based on primarily to meet the needs of their members rather sharing, democracy and delegation for the benefit of than achieve a return on investment.2 all its members.4
The Co-operative Marque and .coop are the symbols of the global co-operative movement and of its collective identity; together they demonstrate its unity of purpose. It was introduced in the United Nations International Year of Co-operatives 2012 as the single common identifier of the co-operative status of an enterprise.
The Co-operative Marque The Co-operative Marque logo and the .coop domain are available free for all conforming organisations at www.identity.coop
1 ICA (2015) “What is a Co-op?”, International Co-operative Alliance, www.ica.coop/en/whats-co-op 2 Grijpstra, D., Broek, S., and Plooij, M. (2011). The role of mutual societies in the 21st century. Brussels, European Parliament 3 Birchall, J. (2011). People-Centred Businesses: Co-operatives, Mutuals and the Idea of Membership. London, New York, Palgrave MacMillan. 4 Mazzarol, T., Mamouni Limnios, E., Soutar, G.N., and Kresling, J. (2016). Australia’s Leading Co-operative and Mutual Enterprises in 2016: CEMI Discussion Paper Series, DP 1601. www.cemi.com.au Centre for Entrepreneurial Management and Innovation.
12 | 2017 National Mutual Economy Report | An economy undermined by financial stress, social exclusion and corporate failings
• Financial stress is on the rise with less than a third of Australian adults (31.2%) ‘financially secure’ in 2016*. Financial • Due to rising property debt over the past decade, as average household debt Stress has almost doubled between 2003-04 and 2015-16^. • Driven by sluggish income growth - between 2007-8 and 2015-16 average weekly household income grew by only $27 to $1,009^.
• Loneliness is increasing. Lifeline has reported that 80% of Australians believe our society is becoming a lonelier place*. Social • Gender inequality remains an issue with women accounting for only one in four company directors^. Exclusion • Regional communities at risk of falling behind as population growth remains focused elsewhere, with capital cities enjoying a growth rate nearly double that of non-capital regions~.
• Continued corporate scandals show that the investor-owned model falls short in critical areas, from financial advice to retirement. Profit • Corporations are too focused on profits according to 82% of Australian adults, Before with 78% agreeing that corporations put investor interests before customer People welfare*. • Short term thinking at the expense of long term financial stability is a real concern, a proposition 63% of survey respondents agree with*.
* Centre for Social Impact and NAB, Financial Resilience in Australia 2016, ^ ABS, Household Income and Wealth, Australia, 2015-16 * Lifeline, 8 out of 10 Australians say loneliness is increasing: new survey, ^ WGEA, Australia’s gender equality scorecard – November 2016, ~ ABS, Census 2016 * Essential Research poll, October 2017
13 | 2017 National Mutual Economy Report | cMEs are tackling financial stress
Millions of Australians secure their Thousands of low income financial future with a customer- Australians rely on housing owned banking institution, as they co-operatives for affordable provide market leading pricing housing. and service.
The last decade of GDP growth has seen Australians lower than the major banks.7 take on record levels of debt, with less than one They are award winners. In 2017, Greater Bank was 5 in three Australians now financially secure. The recognised as the Bank of the Year for Roy Morgan’s runaway rise in dwelling values has caused more Customer Satisfaction Awards. Further, Bank Australia Australians to rent, while rising rents have outpaced was named Australia’s Best Bank in the 2017 Mozo 6 increases in income. Experts Choice Awards. Member-owned entities are helping Australians Housing co-operatives develop affordable housing stabilise their finances and access housing. The for Australians as house prices surge. A key example customer-owned banks and credit unions lend is Common Equity Housing Limited, which houses responsibly and provide better value products in excess of 5,000 people across Victoria, lifting the over the long term. Industry statistics show customer- burden on a stressed market and helping those owned banking institutions offer standard credit households save for the future. cards with rates on average over 5%
“Industry statistics show that the customer-owned banking institutions offer standard credit cards with rates on average over 5% lower than the major banks”
5 Centre for Social Impact & NAB, Financial Resilience in Australia 2016 6 ABS, Census 2016 7 COBA, Media Release - 21 Feb 2017, http://www.customerownedbanking.asn.au/media-a-resources/media-release-alerts/1226-best-value-credit-cards-much-lower-than-big-4
14 | 2017 National Mutual Economy Report | CMEs are building regional economies – agriculture and services
Agricultural CMEs account for Support for regional areas goes beyond $8.6bn in annual turnover, and agricultural CMEs, with a significant support over 13,000 primary number of CMEs offering everything producers, many which are family from retail and banking to medical run farms. and aged care services in regional Australia. banking institutions, energy co-operatives, and many
Importantly, for every dollar spent in a CME, The importance of CMEs, particularly to regional it returns 76 cents to the local community. Australia, has been recognised with the 2017 Support for co-operatives means support for foundation of the Parliamentary Friends of Mutuals and Co-ops, co-chaired by representatives from local community. across political lines, Nationals Senator, Bridget The co-operative advantage has been driving McKenzie and the ALP’s, Dr Andrew Leigh. regional growth for over a century. Locally owned Research shows regional CMEs ensure most of and regionally focused agricultural CMEs contribute their revenue is recycled within the community, $8.6bn to the Australian economy every year, which helps to foster local employment, community providing over 13,000 farmers and fishers with development, and local spending. Ernst & Young’s the support they need to operate locally and sell Sticky Money report estimates for every dollar spent internationally. with a regional co-operative, 76 cents is reinvested The co-operative support for regional economies into the local community.8 goes beyond agriculture, with member owned banking institutions, energy co-operatives, and many more bringing sustainable development to regional Australia.
“All sides of politics understand just how important co-operatives and mutuals are to this country – especially to regional Australia,” Nationals Senator for Victoria, Bridget McKenzie
8 EY, Sticky Money - Recognising the total value created by Australian Co-operatives and Mutuals
15 | 2017 National Mutual Economy Report | cMEs are preparing for an aging Australia
Over three million Australians More than 11 million workers have have chosen a CME for their health their superannuation with a insurance needs. member-owned super fund.
The 2016 Census showed an aging population, with An Industry Super member can be around $2,000 a the median age rising by one year to 38 since the year better off than if they went with an average 2011 Census. This shift is already driving an increased retail fund.9 focus on health and aged care; on the rising costs Beyond helping Australian’s save for retirement, CMEs of delivering essential services and the increasing are caring for Australians as they age. Australian Unity demand for services to be centred around the provides a range of services to older Australians, consumer. including more than 3,100 retirement units and aged Australian CMEs are leading the way in preparing for care beds.10 Over three million Australians cover an aging Australia. Over 11 million Australians have themselves against the unexpected costs of ill health their retirement savings with a member-owned super as members of mutual health insurers like HCF. fund enjoying the benefits of the mutual model.
“An Industry Super member can be around $2,000 a year better off than if they went with an average retail fund.”
9 Industry Super Australia and SuperRatings, Compare the Pair model – October 2017, http://www.industrysuperaustralia.com/media/media-releases/new-figures- show-industry-superfund-members-around-2000-a-year-better-off-after-fees/ 10 Australian Unity, Annual Report 2017
16 | 2017 National Mutual Economy Report | CMEs are tackling social isolation and inclusion in Australia
Co-operatives are taking holistic The sector has funded Eliza’s approaches to health provision, Project, the first national study tackling the negative impacts of measuring gender diversity in loneliness and social isolation. Australian CMEs.
Being socially isolated carries the same health patient’s health, including pre-existing conditions, impact as smoking 15 cigarettes or drinking six to keep them out of hospital and to avoid the higher standard drinks of alcohol per day and is more costs involved (See Chapter 5 for more on Rumbalara predictive of mortality than being physically inactive and the NHC). 11 or obese. The World Health Organisation reports Through their open and democratic membership social connection is more important than access to structure, co-operatives champion diversity. Women 12 healthcare services for health outcomes. were able to join co-operatives more than half a CMEs offer solutions. century before they could vote in a general election. Rumbalara Aboriginal Co-operative’s medical services The co-operative movement has a proud history of are delivered by ‘Woongi Danga’ practitioners, which leading the move towards gender equality but there in Yorta Yorta language means to ‘Do it our way’, who is still a way to go. Eliza’s Project, named for the not only address a person’s medical or health needs, first woman to join a co-operative in Rochdale UK in but also their financial, mental, family and social the mid-1800s, is the first national study measuring needs. Similarly, the National Health Co-operative gender diversity in Australian CMEs. The report will be focuses on ‘Enhanced Healthcare’ - managing a published in late 2017.
“Through their open and democratic membership structure, co-operatives champion diversity. Woman were able to join co-operatives more than half a century before they could vote in a general election” 11 Holt-Lunstad, J., T. Smith, and J. Layton, Social relationships and mortality risk: a meta-analytic review. PLoS Medicine, 2010. 7(7): p. e1000316. 12 WHO, The Determinants of Health, http://www.who.int/hia/evidence/doh/en/
17 | 2017 National Mutual Economy Report | Chapter 2 Sector Snapshot There are more than 2000 CMEs in Australia
More than 8 in 10 Australians are members of a CME
The combined membership of all Australian CMEs is >29 million
Australia’s largest co-op by turnover is an agribusiness
Australia’s largest mutual by membership is a roadside assistance organisation
Australia’s largest member-owned business by assets is a bank
NSW has the most CMEs
CMEs contribute >8% of our GDP
19 | 2017 National Mutual Economy Report | The contribution of the CME sector to the Australian economy CMEs play a vital and quantifiable role locally and internationally. What the data shows:
There are at least Combined they have more than 2,135 $713.6 billion active CMEs in Australia in gross assets
Australian CMEs have a total Total CME GDP is 29 million+ MEMBERS 8.3% as a percentage of Australia’s GDP Australia’s CMEs provide $140 billion Are employers of in Total Value Added to Aus economy 146,000 employees
Total Revenue of Top 100 CMEs is Core business support for over $30 Billion 174,000 businesses including 13,610 farmers and fishers excluding superannuation funds
20 | 2017 National Mutual Economy Report | All part of the 2.9+ million CMEs globally that represent:
Over 1.2 billion members, with strong participation across the globe*
27.2 million direct employees and 252.2 million self-employed producers who rely on co-operatives for their employment*
At least $3.0 trillion (US) in turnover^
$20 trillion (US) in assets^
* CICOPA, Cooperatives and Employment– second global report, 2017, ^ Dave Grace and Associates, Measuring the Size and Scope of the Cooperative Economy
21 | 2017 National Mutual Economy Report | Gross Revenue by industry - Australia’s top 100 CMEs in
FY2015-2016, including superannuation funds For this report we look at the Top 100 CMEs in For a list of the Top 100 CMEs in Australia by Australia by turnover (FY2015/16), showcasing their turnover or by assets see Appendices A and C, with extensive role in supporting Australia’s economy. a list of the top 10 member-owned superannuation In most cases we report the superannuation firms firms included in Appendix B. separately given their scale.
Agriculture, $8.21
Superannuation Funds Health Insurance, $8.0 $80.2 billion
Financial Services, $3.2
Motoring Services, $3.2
Professional Services, Purchasing, and Wholesaling, $2.55 Utilities and Retailing, $0.29
22 | 2017 National Mutual Economy Report | Australia’s top 100 CMEs in FY2015-2016, excluding superannuation funds
$35,000.0 Housing, $44.5 Utilities (power, water, gas), $149.5 Professional Services $281.5 Medical Services, $158.0 Retailing, $306.6 Fishing $372.2 $30,000.0 Wholesailing, Purchasing Services, $649.3 $1782.4 Motoring Services, $3,240.9 $25,000.0
Financial Services, $6,617.9 $20,000.0
$10,000.0 Health Insurance, $8,110.6
$5,000.0
Agribusiness, $8,174.4 $ Turnover ($ - mil)
Australia’s Top 10 CMEs by Turnover in FY2015-2016
1. CBH Group [WA] – $3.27 billion. 6. Australian Unity [VIC] – $1.42 billion. 2. Devondale Murray Goulburn [VIC] – $2.78 billion. 7. Members Equity Bank (ME) [VIC] – $1.22 billion. 3. HCF [NSW] – $2.47 billion. 8. RACQ [QLD] – $1.03 billion. 4. Capricorn Society [WA] – $1.54 billion. 9. RAC WA [WA] – $676.7 million. 5. HBF Health [WA] – $1.51 billion. 10. RACV [VIC] – $584.8 million.
23 | 2017 National Mutual Economy Report | Australia’s top 100 CMEs in FY2015-2016 by state and territory Top 100 CMEs by Turnover FY2015-2016 - Excluding Superanuation Funds - Turnover ($ - mil)
NSW $9,812.9
TOP 100
Turnover ($ - mil) WA $8,205.4
VIC $7,485.0
QLD $2,478.0
SA $1,667.8 TAS $197.3 NT $41.3
24 | 2017 National Mutual Economy Report | Australia’s top 100 CMEs in FY2015-2016 by state and territory Top 100 CMEs by Turnover FY2015-2016 - Excluding Superanuation Funds - By States and Territory
NSW 47
TOP 100
By States and Territory WA 13
VIC 15
QLD 10
SA 11 TAS 3 NT 1
25 | 2017 National Mutual Economy Report | Australia’s top 10 CMEs by assets in FY2015-2016
1. Members Equity Bank (ME) [VIC] – $23.20 billion. 2. CUA [QLD] – $12.90 billion. 3. Newcastle Permanent [NSW] – $9.77 billion. 4. Heritage Bank [QLD] – $8.44 billion. 5. People’s Choice Credit Union [SA] – $7.51 billion. 6. Greater Bank [NSW] – $5.71 billion. 7. Teachers Mutual Bank [NSW] – $5.54 billion. 8. IMB Bank [NSW] – $5.22 billion. 9. Australian Unity [VIC] – $4.82 billion. 10. Beyond Bank Australia [SA] – $4.76 billion.
Australia’s top 10 CMEs by membership in FY2015-2016, including superannuation funds
1. NRMA [NSW] – 2.4 million members. 2. AustralianSuper [VIC] – 2.1 million members. 3. RACV [VIC] – 2.1 million members. 4. The Co-op [NSW] – 2.1 million members. 5. Retail Employees Superannuation Trust (REST) [NSW] – 1.9 million members. 6. RACQ [QLD] – 1.6 million members. 7. HBF Health [WA] – 1.03 members. 8. Hostplus [VIC] – 985,419 members. 9. RAC WA [WA] – 840,000 members. 10. HESTA [VIC] – 800,000 members.
26 | 2017 National Mutual Economy Report | The financial performance of the top 100 CMEs - Sustained and strong growth over the long term The combined annual turnover for the top just over $152.9 billion. Over the past five financial 100 Australian CMEs (excluding the member- years this group saw growth of 6.6% for annual owned superannuation funds) for FY2015/16 was turnover and a further increase of 10.5% for assets. approximately $29.9 billion with combined assets of
Financial performance of Australia’s largest 100 CMEs FY2012 – FY2016
$180,000,000,000 10.5% annual $160,000,000,000 growth in assets $140,000,000,000
$120,000,000,000
$100,000,000,000
$80,000,000,000
$60,000,000,000 6.6% in annual $40,000,000,000 turnover
$20,000,000,000
$0 FY2011/12 FY2012/13 FY2013/14 FY2014/15 FY2015/16
Annual Turnover (gross) Assets (gross)
Linear (Annual Turnover (gross) Linear (Assets (gross)
27 | 2017 National Mutual Economy Report | The long term financial performance of member-owned superannuation funds – Significant growth over 5 years An examination of the financial performance of the super funds rose from around $44.8 billion in member-owned superannuation funds over the same FY2011/12 to $80.4 billion in FY2015/16. Total assets five-year time period found a strong positive trend in rose from $272.8 billion to $549.2 billion over the both gross and median annual turnover and assets. same five-year period. Total annual turnover within the member-owned
Financial performance of Australia’s largest 100 CMEs FY2012 – FY2016
$600,000,000,000
26% $500,000,000,000 growth in assets
$400,000,000,000
$300,000,000,000
$200,000,000,000 20% growth in turnover $100,000,000,000
$0 FY2011/12 FY2012/13 FY2013/14 FY2014/15 FY2015/16
Annual Turnover (gross) Assets (gross)
Linear (Annual Turnover (gross) Linear (Assets (gross)
28 | 2017 National Mutual Economy Report | Aboriginal and Torres Strait Islander CMEs
A significant part of the Australian CME sector delivery of medical services (70.2%), community are those enterprises owned and operated by services (15.6%), housing (5.5%) or arts and culture the Aboriginal and Torres Strait Islander (ATSI) (4.1%). In practice these enterprises offer a wide community. There were at least 218 ATSI CMEs range of services (e.g. child care, education and actively trading in FY2015/16. financial assistance) and are a key part of their local communities. The majority of these CMEs were focused on the
ACT 2 SA 13 TAS 1 WA 21
NSW 64
NT 23
VIC 38 QLD 56
Medical Services 153
Aboriginal and Torres Straight Islander CMEs By Industry Community Services 34
Housing 12
Art and Culture 9
Business Retailing and Recreation Services 5 Annual Turnover (gross) Assets (gross) Education Training and Child Care 3 Linear (Annual Turnover (gross) Linear (Assets (gross) Employment Services 2
29 | 2017 National Mutual Economy Report | Chapter 3 Measuring the Value of CMEs Australia’s co-operative and mutual enterprises (CMEs) generate significant economic and social benefits not captured at a national level by any current framework.
CMEs are significantly more inclined than investor-owned businesses to invest their profits back into the community.
Enterprise co-operatives provide core business support to over 174,000 Australian enterprises, offering improved returns and reduced risk via aggregation.
31 | 2017 National Mutual Economy Report | Measuring the CME difference Member-owned organisations have bottom lines beyond profit, adding value not measured by current accounting frameworks. This unmeasured value includes both social and economic returns. A balance sheet does not capture costs avoided, the benefit of member education, or the value of revenue security for members. It does not capture the value of having a member-owned culture focused on delivering service before sales. Quantifying this value is a challenge. But, like other types of business, CMEs must measure their shared value to compete.
Looking at community investment and network value The next section examines the direct community investment undertaken by CMEs. Sponsorship and donations are not a marketing pitch, a co-operative exists to support its community. We also look at the ‘network value’ provided by enterprise CMEs. These enterprises provide core business support to 174,664 Australian enterprises, offering CMEs and non-CMEs an opportunity to improve their returns and lower their risk.
32 | 2017 National Mutual Economy Report | Investing in the community Surveyed CMEs are over six times Member-owned does not mean the focus is only more likely to donate their profits on the membership. The co-operative difference to the local community includes a focus on the community in which a CME operates. This includes donations and sponsorships The London Benchmarking Group (LBG) provides to reinvest surplus funds back into the local a framework for measuring and comparing community. Importantly, in taking the longer term community investment. Using the data supplied view, CMEs can invest in tackling the challenges that by this framework shows that on average CMEs are face a community without expecting a short term significantly more likely than major Australian and branding or marketing advantage. New Zealand companies to invest their profits into the community.
Avg. NPBT given to community investment
Reporting CMEs 3.9%
Surveyed Australian and New Zealand Companies 0.6%
Source: London Benchmarking Group ratios reported in CME Annual Reports
33 | 2017 National Mutual Economy Report | Enterprise Co-operatives: Accessible aggregation for Australian
Businesses Over 174,000 Australian businesses use the services bargaining power. This network value is enhanced by provided by enterprise co-operatives to be more the member-owned difference, as the CMEs pass on profitable and secure. The support these CMEs provide savings to members, act for the long term, and remain to their members ranges from helping farmers to locally controlled by their members. market and sell their produce to providing specialised The network value extends beyond profit maximisation. wholesale payments services for financial institutions. Co-operatives allow members to hedge against risk, Enterprise co-operatives provide a network value, invest in infrastructure and develop markets that allowing various businesses to aggregate their are not available to smaller entities. Co-operatives resources for better returns and lower risks. A group advocate for members so that they can punch above of businesses can access cost savings and enhanced their weight in domestic and global markets. revenues from economies of scale and collective
Enterprise Co-operatives: Supporting over 174,000 Australian Businesses
Utilities (power, water, gas) 4,761 Wholesaling 1,248 Agriculture 13,610 Retailing 11,305
Purchasing Services 23,620 Financial Services 48,044
Professional Services 72,076 Housing 5,259
34 | 2017 National Mutual Economy Report | Aggregated support, delivered co-operatively – The ‘network value’ supplied by enterprise co-operatives
Member Ownership
Members first Long term focus Local ownership
Aggregated Centralised business Improving business Revenue security purchasing power development environment
• Economies of • Access to broader • Access to business • Advocacy scale markets development tools • Long term • Collective • Hedging against • Marketing and investment bargaining power risk brand building
35 | 2017 National Mutual Economy Report | Chapter 4 Football in Focus Co-operative and mutual enterprises (CMEs) play a central role in many local and international sporting competitions, from the AFL to UK football leagues and the Bundesliga.
This member-owned focus delivers sustainable competition, supporter engagement and long-term community value.
37 | 2017 National Mutual Economy Report | Football in Focus – Co-operatives by another name Community is at the heart of Australian sport and it The popularity of AFL continues to expand, as 2016 saw is no surprise that the AFL has a proud tradition of record membership numbers for the 16th season running. member ownership. Our most popular sport counts The same member focus holds true in other regions one in 28 Australians as members of the 18 AFL clubs and across different codes, from American football across the country. Most AFL clubs are part of the teams like the Green Bay Packers to supporter owned broad range of member-owned organisations that do soccer clubs like Barcelona and Bayern Munich. not explicitly identify as mutuals or co-operatives in Internationally, supporter ownership is on the rise and Australia. delivering value across multiple codes.
“One strong feeling I had from my time at the Swans was that AFL people don’t feel the same attachment to a privately owned club. Members feel the club belongs to them. But when there is a private owner things change, and people have a different attachment to the club. The thing that astonished me was that people who would do things for the club - and had done for years for nothing just because they wanted to be involved - as soon as there was a private owner, they wanted handouts. In 1986, that exceeded over $1 million of payments that hadn’t been made in previous years.”
Geoffrey Edelsten, private owner of the Sydney Swans 1985-86
38 | 2017 National Mutual Economy Report | A fantastic result for Richmond, the 2017 Premiers – The Tigers, a member-owned club.
4.1 million “It is clear average viewership for the 2016 that supporter Toyota AFL Grand Final community 1,404,176 ownership creates participants in Australian Football Including long-term, deep and sustainable 380,041 women AND partnerships 360,648 participants in community club football, WITH with key strategic partners.” 14,772 Supporters Direct, UK, Business teams across the country Advantages of Supporter Community All built around Ownership in Football 875,197 AFL club members Source: AFL Annual Report 2016
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What does membership mean in the AFL?
“Connection to your club, support of your team, feeling part of a broader community – this is the great benefit of sport in the lives of everyday fans.”
Elizabeth Lukin, AFL General Manager Corporate Affairs and Communications, AFL Annual Report 2016
Membership is a reciprocal relationship between ownership and control pending a managed transition. the club and its supporters. The entertainment and Even in these cases, clubs including the Swans and sense of community provided to the fans is balanced Giants, encourage their ‘nominal’ members to vote in by the financial support and community involvement part of the Board. that the supporters provide the club. Members play a vital role sustaining their club, both The majority of AFL clubs are owned by their on the field and off. Members are the guaranteed members, particularly the core of Victorian clubs, vocal supporters on the grounds and give life to club with these members voting in the directors that activities. This is financial, both directly via payments decide their club’s future. The AFL Commission, and indirectly via drawing in sponsor attention; which is itself member-owned (the members are the and it is non-financial, through important voluntary AFL clubs), plays a critical role in establishing and activities and contributions. This is recognised by overseeing new clubs joining the league, and retains various club leaders.
40 | 2017 National Mutual Economy Report | “To all of our incredible members, thank you, you are the backbone of our club” Lindsay Tanner, Chairman, Essendon Football Club, Annual Report 2016
“And of course, our members and supporters that back us week in and week out. Without that support we would be nothing.” Chris Scott, Senior Coach, Geelong Cats, Annual Report 2016
41 | 2017 National Mutual Economy Report | Chapter 5 Case Studies - primary Health in the Spotlight These articles are shorter versions of the case studies written for Australia’s Leading Co-operative and Mutual Enterprises in 2017: CEMI Discussion Paper Series, DP 1701.
You can read the full case studies in the Discussion Paper, which you can access from the Centre for Entrepreneurial Management and Innovation website: www.cemi.com.au.
The National Health Co-op was formed in response to declining access to affordable healthcare in the ACT, and now provides 36,000 members with access to a range of health services. This includes their ‘Enhanced Healthcare’ approach, where they focus on keeping people out of hospitals via programs and services to pre-treat and manage health conditions.
The Rumbalara Aboriginal Co-operative provides an integrated set of services that its members, who represent 30% of the Aboriginal and Torres Strait Islander population living in the Greater Shepparton region, require to live healthy, meaningful lives. The service model, ‘Galnyan Yakurrumdja’ or ‘I respect’ in the Yorta Yorta language, includes family support, housing, financial advice and counselling, women’s education and training, and legal and justice services.
43 | 2017 National Mutual Economy Report | Co-operative approaches to healthcare
1. National Health Co-operative: challenging the status quo
The National Health Co-op (NHC) is a member-owned general practitioner medical services sector. Already, health services co-operative headquartered in the there is a fall in bulk billing and the rise of large ACT, providing around 36,000 members with access scale GP clinics that implement a tight control over to a range of bulk-billed health services. The primary time spent per patient by each doctor. The NHC aim of NHC is to deliver affordable and accessible believes that its co-operative business model may healthcare to its members, and to significantly be able to address many of the problems facing the reduce preventable diseases. national healthcare services sector. A key factor motivating the board and senior The NHC believes that an important factor that has management of NHC is the spiralling cost of pushed up the cost of healthcare is the dominance healthcare in Australia, driven by an ageing of investor owned business models within the population. Against this growing demand for sector, which are focused on the maximisation of healthcare services, federal and state government shareholder returns. The investor owned firm’s health budgets have been placed under increasing business model represents a “misalignment of strain, leading to the Federal Government placing a incentives” with shareholders seeking increasing freeze on Medicare rebates for GP services until 2018. returns via higher profits, and the consumer wanting more affordable healthcare services. This freeze on rebates will significantly impact the
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Responding to a market failure Like many CMEs the creation of NHC was motivated where the national average was around 87%. by a community response to a market failure. This In September 2004, local residents and community took the form of a lack of general practitioners in the organisations held a public meeting to discuss this West Belconnen region of Canberra. This northern GP shortage. An outcome of this meeting was the suburban area is home to over 20,000 people, but formation of a community representative committee, the continuous closure of medical practices had which identified the co-operative model as a left many households without ready access to GP potentially effective solution to the problem. The services. This decline in GP services, in particular justification for selecting a co-operative structure was bulk-billing clinics, across the ACT had been taking explained by the NHC management as follows: place for many years. For example, in 2003 the ACT had the lowest bulk-billing rates (37%) in Australia,
“The co-operative business model was selected… because it is a model that is legitimately owned by the community, and is there solely for the benefit of the community. Further, it…allows the business to operate as a ‘business’, but ensures that the ownership of the business remains vested in the community, and the community benefits from the services that are delivered.”
Blake Wilson, Deputy CEO, NHC
45 | 2017 National Mutual Economy Report | A community initiative enabled by A community initiative enabled by government support government support The West Belconnen Health Co-operative Ltd was As a member-owned entity, NHC is focused on established in December 2006, and registered under creating social and economic value for its members. the Co-operatives Act (ACT) 2002. Its first GP clinic NHC creates value by delivering affordable and was opened in January 2010 in the Canberra suburb accessible healthcare to its members. Further, as of Charnwood. This suburb had been particularly a non-distributing co-operative, NHC uses all its affected by the loss of GP services placing increasing revenue to deliver services to its members. pressure on retail pharmacists to deliver frontline Adult members who join the co-operative pay an healthcare. Initial capital grants of around $400,000 initial $30 joining fee and a monthly fee of $10 or were secured from the ACT and Federal Governments annually at a discount rate of $100. This entitles to compliment the community generated support. them to unlimited access to bulk-billed primary These resources enabled the recruitment of a doctor healthcare services. Free membership is provided from the United Kingdom, and the establishment of to the children of members aged under 18 years the first clinic. and to members in need on a case-by-case basis. Membership increased strongly, and by 2016 NHC As explained by NHC’s senior managers, their had eight GP clinics located across the ACT and had membership engagement strategy is focused on moved into New South Wales with the building of a communicating that the co-operative is different clinic in Yass. In 2014 the name changed to National because it is a member-owned, not for profit Health Co-operative, to reflect the wider goals of enterprise. Further, it is committed to offering the co-operative. The board of the NHC now plans affordable healthcare to all Australians not just to expand nationally and, since the adoption by the existing members. NHC also aims to significantly ACT Government of the Co-operatives National Law reduce the instances of preventable diseases, and (ACT) Act 2017, considers that there are few legislative the personal and societal impact of preventable impediments to this ambition. conditions. At time of writing NHC had around 36,000 individuals who used the co-operative’s services as patients. It also employed more than 90 staff in medical and administrative roles across eight sites located within Canberra. In 2016 NHC generated revenues of just over $8.3 million and had total assets of around $2.2 million.
46 | 2017 National Mutual Economy Report | Enhanced healthcare and keeping people out of hospital NHC considers that its key point of strategic including pre-existing conditions, so as to keep them differentiation is its focus on ‘Enhanced Healthcare’. out of hospital and thereby avoid higher costs to This is the ability to manage a patient’s health, both the patient and the national healthcare system.
“One of the biggest contributions we can possibly have is keeping people out of hospital. So, the fact that you get people going to hospital because they have unmanaged chronic diseases, or they haven’t been pre-treated or haven’t had access to alternative affordable healthcare options, are all problems that we can solve now… we can pre-treat and we are already doing this by enrolling people in programs and providing outreach services to individuals who are likely to develop a disease and then help to reduce their risk of getting ill.”
Blake Wilson, Deputy CEO, NHC
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Planning for a national expansion The focus of NHC is to keep the cost of their services every state and territory in Australia. A potential as low as possible and reinvest any surplus funds challenge facing NHC will be to replicate its business back into the delivery of more services. To this end model in large states such as Queensland and the co-operative aims to increase its growth in order Western Australia where there is a need for frontline to help grow the overall healthcare sector, and also healthcare services in regional and remote areas. maintain the affordability of primary healthcare An advantage the NHC feels it has is that it does not to the Australian public. It views this mission as a have any incumbent infrastructure to worry about. critical one that will focus its strategic activity over This allows them to avoid the previous high ‘up- the longer term. front’ infrastructure costs, and use more flexible With the success of NHC within the ACT and regional models and technologies for service delivery. One NSW the co-operative’s board is now looking to of its potential growth paths will be to work with the the future and planning for a national expansion. existing small GP practices, providing clinicians with However, in the short term (i.e. 2017-2019) attention access to a range of additional allied healthcare will be given to consolidation of the existing network services and support mechanisms so that they can of GP clinics within the ACT and surrounding regions focus on spending more time with their patients. in NSW. Having captured around 10 percent market In the more foreseeable future, NHC has identified share within the ACT and regional area, NHC aims to areas such as day surgery where it might be able grow this to around 20 percent in the period to 2020, to provide value to its members. In addition, NHC thereby providing the co-operative with a very strong considers that it can potentially take a lot of cost base within Canberra from which to grow. pressures off hospitals by providing in-home care, Over the medium to long term (i.e. 2020-2027), the as hospitals are the area of greatest cost to the NHC plans to establish around 200 clinics across Australian healthcare sector.
ACT Chief Minister, Andrew Barr, and ACT Assistant Minister for Health, Meegan Fitzharris, meet with NHC CEO, Adrian Watts, and NHC General Manager, Blake Wilson.
48 | 2017 National Mutual Economy Report | 2. Rumbalara Aboriginal ‘Galnyan Yakurrumdja’ Co-operative: The name given to the integrated service model The Heart of the Community delivered by Rumbalara is ‘Galnyan Yakurrumdja’ or ‘I respect’ in the Yorta Yorta language. This is a holistic The Rumbalara Aboriginal Co-operative Ltd is a or all-encompassing model focused on providing community-owned and controlled enterprise located the Co-operative’s members with the services they in Shepparton, Victoria. Rumbalara is one of the need to live healthy, meaningful lives. At the core largest service providers to the Aboriginal and Torres of this process is a recognition that Indigenous Strait Islander (ATSI) community in Victoria, and one Australians have many challenges the majority of of the largest Indigenous owned co-operatives in their counterparts in the non-Indigenous Australia. community do not face. At time of writing Rumbalara had approximately 600 The approach Rumbalara takes to service delivery registered members, which represented about 30% of is focused on cultural and social understanding the ATSI population living in the Greater Shepparton and respect. For example, its medical services are region. With an annual turnover of around $20 delivered by ‘Woongi Danga’ practitioners, which in million, Rumbalara employs approximately 200 Yorta Yorta language means to ‘Do it our way’. This people and provides an integrated service delivery includes not only addressing the needs of a person’s model for its members. medical or health needs, but also their financial, mental, family and social needs.
“Medical services are delivered by ‘Woongi Danga’ practitioners, which in Yorta Yorta language means to ‘Do it our way’ ”
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Community action – the ‘Cummeragunja Walk-Off’ By the middle of the last century the area was part By the 1950s there were around 300 Yorta Yorta of the Cummeragunja Mission Station located in New people living on the river flats, an area that is prone South Wales. The mission was established in 1888. Its to flooding. After the Rumbalara site was abandoned initial aim was to build a farm of around 730 hectares in 1969, during the 1970s the Yorta Yorta community of land for the local Yorta Yorta people to use for lobbied both state and federal governments to secure self-sufficiency. However, the station suffered under control over the site, which was eventually granted to harsh management until 1894, when George Harris the co-operative for a nominal sum. was appointed. He sub-divided the land into small As explained by Rumbalara’s CEO Lee Joachim, the lots and granted these to families and individuals. foundation of the Rumbalara Aboriginal Co-operative This improved the conditions for the community was a genuine case of community collective action: who were able to grow their own food, and manage their own affairs. The community began trading wool, wheat and dairy produce, and reinvested the funds back into the community. However, in 1909 the community was placed under the control of the Aborigines Protection Board of NSW, which eroded the community’s limited independence, taking their profits as the level of housing, sanitation and family cohesion began to decline, including via the forced removal of children from their families. During the 1920s and 1930s conditions within Cummeragunja, like many Aboriginal missions across NSW, worsened. An exodus of Aboriginal families from the townships into the mission stations, swelled the already overcrowded community facilities and worsened the living conditions. In 1939, following several deaths within the mission community caused in part by malnutrition, the Yorta Yorta organised a strike or ‘walk-off’. Approximately 100 men, women and children left Cummeragunja Mission Station and crossed into Victoria. Their protest action has been identified as one of the first organised Aboriginal civil rights protests in Australian history. Cummeragunja school children
50 | 2017 National Mutual Economy Report | “The co-operative got started in the 1970s when there were really major issues in getting access to health services, and really huge issues in relation to the justice system at that time as well, and housing really became an issue also. So, a group of women came together to deal with this and they decided on where they wanted to move forward with this as a community, and bring the community forward on that as well. It worked out really well because there was no money involved.”
Lee Joachim, CEO, Rumbalara Aboriginal Co-operative
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The Rumbalara Purpose This need to focus on the individual’s total needs, services encompass a wide-range of programs and understand these needs within the context of designed to enhance the overall security and well- their wider community, lies at the heart of the being of families and children. Rumbalara also
“You might be a 65-year-old woman who’s come here
just for a medical check-up, but you might also be looking after your grandchildren, and there might be domestic violence and alcohol abuses in the immediate family. But you might also be suffering from economic
stress because you now have to feed more people, or your utility bills are going up, so it is how are we going to deal with the whole range of issues that are facing that individual who has just come here for one
appointment, and how do we create a case management process around that person, to help build capacity for the individual and the family?”
Lee Joachim, CEO, Rumbalara Aboriginal Co-operative
purpose for which the Rumbalara Aboriginal provides educational support programs for children Co-operative exists. It is also the focus of its that include child health and parenting support, member value proposition. kindergarten, after school homework club and autism The range of services provided by Rumbalara includes support group. family support and counselling, housing, financial Rumbalara offers programs for its older and disabled advice and counselling, women’s education and members. This includes both home care support, and training, and legal and justice services (e.g. a 30-bed Rumbalara Elders Facility. family violence, youth support, night patrols). Family
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Funding and governance in challenging circumstances Rumbalara’s CEO, Lee Joachim, notes that a major Rumbalara is working to develop the capacity of its problem for Indigenous co-operatives is that they community to provide future directors. The Co-op are typically dependent on government funding for has been working with the Australian Institute of their operation. Rumbalara is fully dependent on Company Directors (AICD) to this end by putting its this funding, and this can be a problem because directors and some future directors on a company government authorities don’t always understand the directors training course. This education for the business model of the co-operative as it seeks to directors of the co-operative is part of a wider pursue its Galnyan Yakurrumdja service model. program designed to educate all members of staff who work in the organisation. A recent major impact on Rumbalara has been the removal of block funding, which has shifted the money from the service provider to the end-user. This has now made the environment in which Rumbalara operates more of a consumer market. The co- operative has had to go out to its members to explain that they are now the funding source for the services that it delivers. The major changes that have occurred in government support, such as the removal of block funding, haven’t yet been fully understood by the community. As such, they find it difficult to understand why it is that the co-operative is focusing on strategies to introduce fee for service. Shifting to a ‘hand-up’ from a ‘hand-out’ model is something that many members find hard to accept. Another challenge facing Rumbalara is the difficulty of securing directors for its board. This lack of professional directors at the board level has been a problem for many Indigenous and non-Indigenous co-operatives.*
* At time of writing, Rumbalara was in voluntary administration caused by a difficulty it has experienced in attracting and retaining board members.
53 | 2017 National Mutual Economy Report | Future directions – education and enterprise The immediate focus for Rumbalara is to consolidate Rumbalara is planning to establish a school that can their model of holistic healthcare and to undertake run for its members from Kindergarden to 10, with research to provide the data to demonstrate the a curriculum that is focused on teaching science, value and impact of this model. Over the medium technology, engineering and mathematics (STEM), but to longer term, the co-operative plans to pursue through a lens of Indigenous culture. This is part of innovative programs designed to help alleviate a wider vision to help develop the next generation of the social and economic disadvantage within their Indigenous leaders who can be empowered through community. education and a different way of looking at the world. The Co-operative will work with Indigenous children One example of this is an education program from Year 8 through to Year 12, to enhance their targeted at young mothers with babies that helps longer-term employment prospects. They have been them develop good parenting skills, and also foster working with the State Education Department on community support and stronger family outcomes. this program. The Co-operative is considering enterprise programs that might foster home-based business start-ups According to Rumbalara’s CEO, Lee Joachim, if the and offer micro-loans to help fund such ventures. Co-operative is to achieve these goals, it must It aims to encourage enterprise behaviour through widen its networks and strategic partnerships. This teaching business and financial management skills will involve working more closely with government to youth, and to work with local TAFE colleges to put agencies. There are a number of different government Indigenous people through programs such as the reforms underway at all levels of government across Certificate III and IV in Small Business Management. healthcare, justice, Indigenous issues, and other areas.
54 | 2017 National Mutual Economy Report | 55 | 2017 National Mutual Economy Report | Chapter 6 The Challenges in Researching CMEs There is no unified and consistent reporting on the Australian co-operative and mutual enterprise (CME) sector, an issue highlighted by the Senate Economics References Committee.
There are two dimensions to this challenge in researching CMEs, firstly the statistical challenge of no standardised collection of data concerning CMEs at a national level. Secondly, there is the challenge of capturing the economic and social value provided by CMEs, as traditional measures such as balance sheets are not geared to capture value beyond profit.
There are sector initiatives to tackle the co-operative research challenge, including an ongoing widescale collection of data around CMEs and a project underway to construct an accounting framework for capturing member value.
57 | 2017 National Mutual Economy Report | The co-operative research challenge Figure: The two components of the co-operative research challenge
The co-operative research challenge
Measuring the impact of CMEs on Australia’s economy and society
StatisticalLong Term challenge Focus LongValue Term challenge Focus
How many CMEs What value beyond profit are there? do CMEs provide? What is the scale of How to capture this CME economic activity? unmeasured value?
58 | 2017 National Mutual Economy Report | 8% of the Australian economy is mis-reported, with no unified and consistent reporting on the CME sector. The 2016 Senate Economics References Committee inquiry into co-operatives, mutuals and member- owned firms placed this issue front and centre, with their first recommendation:
“The committee recommends that the Commonwealth Government ensures that a national collection of statistics and data is undertaken to provide an accurate picture of the scale and extent of the co-operative and mutual sector.” Recommendation 1, Senate Economics References Committee inquiry into co-operatives, mutuals and member-owned firms.
The issue of accurately measuring the impact of Informed decision making regarding Australia’s future co-operatives on the Australian economy and society requires an accurate measure of the scale and impact goes beyond the statistical challenge. What is not of all businesses including CMEs. The BCCM together captured and hence not reported, is the value that with its research partners is tackling the co-operative CMEs create in putting their members, sustainability, research challenge. The next pages outline the and their community before profit. Existing data statistical and value challenges in more depth, and frameworks, including balance sheets, are not built look at sector-led efforts to tackle these issues. to capture the value generated by CMEs, as they are geared around measuring financial performance as measured by profit.
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How many CMEs are there? The statistical challenge Thanks to the hard work of our research partners we of data and no standardised set of classifications to know that at least 8 in 10 Australians belong to one or report on these CMEs. more CME. However, there is no centralised collection
CMEs use a number of different legal models. Governing legislation includes:
• The Co-operatives National Law (used by thousands of co-operatives) • The Corporations Act (used, for example, by member-owned banking institutions) • State and territory associations legislation • The Corporations (Aboriginal and Torres Strait Islander) Act
While CME legal models may differ, they all share the same DNA based on member focus and control
60 | 2017 National Mutual Economy Report | All CMEs are owned by their members and exist for This contributes to the fact that 8% of the Australian the benefit of this group. But CMEs also operate economy is mis-reported, with no unified and under different legal structures and regulated by a consistent reporting. mix of state, territory and commonwealth regulators.
Figure: Why the statistical challenge exists
The statistical research challenge
How many CMEs are there? What is the scale of CME economic activity?
No centralised No standardised Longdata Termcollection Focus Longdefinitions Term Focus
No central register for No definition of mutuals CMEs in Australia under the Corporations Vast majority are Act and therefore no registered in separate identification of mutuals state/territory level in the Companies registers, being Register regulated under the No nationally agreed Co-operatives upon identifiers of CMEs National Law and the differing forms of CMEs
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What value do CMEs create? The impact challenge Usually, profit is the main indicator of entity Measuring the total value produced by CMEs is a performance. Profit maximisation is easy to challenge. There is no widely accepted accounting understand, and it is the legally defined purpose for framework in place and no easily quantifiable data most businesses. More importantly, a well-developed that covers the social and economic returns of CME accounting system allows for the ready comparison operations. That’s why the BCCM has teamed up with of corporate performance across different businesses Monash University to develop a consistent accounting and industries. methodology for measuring the total value created by CMEs. The results of this project will be delivered Profit falls short when it comes to measuring in 2019. CME performance. CMEs are focused on providing economic and social value to their members and in This report provides examples of the diverse ways so doing, meeting a specific community need. Profit in which CMEs provide value to Australians, from the is still part of the equation, representing long term financial benefit of lower cost financial products to financial stability, but it does not describe the total the shared value of accessible health care. value a CME creates for its members.
4 million Australians obtain banking services from customer-owned banks and credit unions. These banking institutions offer market leading pricing but currently we cannot fully capture the value provided to customers by their financial institutions, which are primarily focused on service and not sales.
62 | 2017 National Mutual Economy Report | Sector initiatives to tackle the
co-operative research challenge In spite of these challenges, the CME sector is work undertaken by independent researchers and working with a number of stakeholders to tackle the CMEs to better capture the scale and scope of the co-operative research challenge. The BCCM acts as a CME sector and its social and economic importance. hub for CME focused research, bringing together
Current CME Research Project Collaborations
Australian Co‑operative and Mutual Enterprise Index (2012-) A long term research project undertaken by the University of Western Australia to map the size and structure of the CME sector in Australia. See http://cemi.com.au/cmes - University of Western Australia (Professor Tim Mazzarol, Dr Elena Limnios and Johannes Kresling)
National Mutual Economy Report (2014-) An annual publication produced by the BCCM reporting on the annual performance of the CME sector - University of Western Australia (Professor Tim Mazzarol, Dr Elena Limnios and Johannes Kresling) - BCCM
Co-operatives in Australia – Visual Atlas of Australian Co-operatives (2017-2019) Will chart the development of CMEs over space and time in a visual and interactive way - Dr. Nikola Balnave (Macquarie University), Associate Professor Olivera Marjanovic (University of Sydney) and Professor Greg Patmore (University of Sydney)
Measuring Mutual Value Research Project (2017-2019) Designed to investigate and develop mechanisms to enable measurement and reporting of mutual value through a field study of multiple organisations across the industry. - Prof Matthew Hall (Monash University), Dr Paul Thambar (Monash University) and Prof Yuval Millo (Warwick Business School)
Eliza’s Project (2017) Measuring gender diversity inclusion in the CME sector in Australia - PerCapita - BCCM
63 | 2017 National Mutual Economy Report | Chapter 7 Tables and Data 65 | 2017 National Mutual Economy Report | APPENDIX A: AUSTRALIAN TOP 100 CMES BY ANNUAL TURNOVER, EXCLUDING SUPERANNUATION FUNDS, FY2015-2016
Turnover EBIT NPAT Total Assets Rank Name State ($AUD-mil) ($AUD-mil) ($AUD-mil) ($AUD-mil)
1 CBH Group WA $3,270.6 $51.5 $49.8 $2,110.1 2 Devondale Murray Goulburn VIC $2,777.7 $57.5 $39.8 $2,177.8 3 HCF NSW $2,465.0 $179.1 $177.0 $1,999.4 4 Capricorn Society WA $1,542.9 $22.7 $15.9 $320.1 5 HBF Health WA $1,512.1 $35.4 $35.4 $1,694.6 6 Australian Unity VIC $1,420.7 $55.2 $35.6 $4,817.8 7 Members Equity Bank (ME) VIC $1,221.6 $107.5 $76.8 $23,203.4 8 RACQ QLD $1,031.3 $32.2 $23.1 $2,495.7 9 RAC WA WA $676.7 $34.9 $30.3 $1,602.2 10 RACV VIC $584.8 $53.4 $46.7 $2,096.0 11 NRMA NSW $557.6 $35.2 $34.1 $1,332.9 12 Teachers Health NSW $543.8 $22.8 $22.8 $408.9 13 Norco NSW $541.1 $2.0 $1.4 $178.0 14 GMHBA VIC $524.5 $15.2 $16.2 $338.8 15 CUA QLD $520.1 $72.5 $51.7 $12,898.4 16 People’s Choice Credit Union SA $407.3 $49.4 $35.9 $7,514.3 17 Newcastle Permanent NSW $396.0 $56.8 $39.4 $9,773.2 18 Heritage Bank QLD $393.2 $51.1 $36.1 $8,440.7 19 Geraldton Fishermen’s Co-operative WA $372.2 $0.5 $1.2 $140.9 20 Independent Liquor Group Distribution Co-operative NSW $371.6 $11.8 $0.0 $58.5 21 CBHS Health Fund NSW $360.7 $7.8 $7.8 $259.0 22 RAA SA SA $329.4 $5.6 $5.5 $456.5 23 Avant Mutual Group NSW $281.5 $28.4 $26.2 $2,027.0 24 Western Australian Meat Marketing Co-operative WA $280.5 $0.4 $2.2 $87.5 (WAMMCO) 25 Namoi Cotton NSW $279.7 ($10.7) ($7.6) $199.9
66 | 2017 National Mutual Economy Report | Turnover EBIT NPAT Total Assets Rank Name State ($AUD-mil) ($AUD-mil) ($AUD-mil) ($AUD-mil)
26 Teachers Mutual Bank NSW $274.7 $43.2 $30.3 $5,543.0 27 Greater Bank NSW $270.7 $42.2 $29.5 $5,715.3 28 Cuscal NSW $266.3 $16.8 $13.3 $2,173.4 29 Almondco Australia SA $238.6 $5.2 $4.8 $179.2 30 IMB Bank NSW $237.8 $42.2 $29.6 $5,224.1 31 Northern Co-operative Meat Company (NCMC) NSW $230.0 $1.6 $0.8 $151.0 32 Beyond Bank Australia SA $229.6 $33.0 $24.6 $4,760.7 33 EML NSW $229.4 ($0.7) ($1.0) $316.3 34 Independent Liquor Group (Suppliers) Co-operative NSW $209.0 $3.3 $2.6 $55.6 35 Westfund Health Insurance NSW $178.6 $14.7 $14.7 $182.0 36 Bank Australia VIC $167.4 $31.2 $22.6 $4,038.8 37 Latrobe Health Services VIC $165.8 $10.6 $10.6 $205.3 38 Queensland Country Credit Union QLD $163.2 $8.3 $8.7 $1,358.1 39 Health Insurance Fund of Australia (HIF) WA $162.6 ($5.6) ($5.6) $118.8 40 P&N Bank WA $149.7 $12.6 $8.6 $3,761.1 41 TUH Health Fund QLD $149.0 ($2.2) ($2.2) $125.1 42 Plumbers’ Supplies Co-Op NSW $142.6 $0.9 ($0.3) $65.2 43 Health Partners SA $136.8 $5.8 $5.8 $137.4 44 Dairy Farmers Milk Co-operative NSW $134.1 $0.4 $0.4 $18.8 45 The Co-op NSW $133.0 ($1.4) ($1.4) $61.2 46 Qudos Bank NSW $132.5 $20.3 $14.2 $3,347.1 47 Peoplecare NSW $131.7 $6.6 $6.6 $97.9 48 Medical Indemnity Protection Society (MIPS) VIC $111.0 $22.3 $20.3 $507.9 49 St. Lukes Health TAS $103.0 $5.1 $5.1 $108.7 50 rt health fund NSW $101.1 $1.2 $1.2 $77.4 51 ASG VIC $94.8 $4.8 $0.0 $1,579.8 52 Victoria Teachers Mutual Bank VIC $90.5 $21.6 $16.1 $2,161.6 53 Police Bank NSW $89.6 $12.5 $8.8 $1,555.1 54 MDA National WA $88.5 $4.9 $3.4 $392.6
67 | 2017 National Mutual Economy Report | Turnover EBIT NPAT Total Assets Rank Name State ($AUD-mil) ($AUD-mil) ($AUD-mil) ($AUD-mil)
55 Defence Bank VIC $86.3 $14.4 $10.0 $1,780.5 56 NSW Sugar Milling Co-operative NSW $85.5 * * * 57 Murrumbidgee Irrigation NSW $80.5 $30.5 $31.0 $575.1 58 StateCover NSW $79.1 * * $450.7 59 Hastings Co-op NSW $75.7 $1.2 $1.3 $21.2 60 QT Mutual Bank (merged with RACQ, now trading as QLD $74.0 $7.4 $5.4 $1,434.4 RACQ Bank) 61 BankVic VIC $71.9 $14.6 $10.2 $1,502.9 62 bcu NSW $71.7 $12.6 $8.8 $1,523.1 63 Macadamia Processing Company (MPC) NSW $71.5 $4.3 $3.7 $31.5 64 Navy Health VIC $69.5 $9.5 $9.5 $95.4 65 Murray Irrigation NSW $68.9 ($49.8) ($35.3) $482.5 66 Rapid Clean NSW $68.7 * * * 67 The Community Co-Operative Store (Nuriootpa) SA $68.5 $0.9 $0.7 $48.1 68 Regional Australia Bank NSW $63.4 $10.6 $7.3 $1,179.1 69 CCW Co-operative SA $62.6 $0.4 $0.3 $4.3 70 Oz Group Co-op NSW $61.9 $3.6 $0.5 $15.6 71 RACT TAS $61.1 $4.1 $4.2 $96.2 72 Master Butchers Co-operative SA $59.0 $2.1 $2.2 $39.5 73 Yenda Producers Co–operative Society NSW $59.0 $1.5 $1.2 $37.7 74 Mildura Health Fund VIC $53.9 $1.1 $1.1 $87.7 75 Institute for Urban Indigenous Health QLD $49.0 $2.0 $2.0 $21.9 76 Australian Military Bank NSW $48.6 $6.5 $4.7 $1,131.8 77 Capricorn Mutual WA $46.5 $5.6 $5.5 $59.1 78 Lenswood Apples SA $46.2 ($2.1) ($1.5) $25.7 79 Gateway Credit Union NSW $46.0 $3.8 $2.7 $1,036.9 80 Unity Bank NSW $45.1 $4.4 $3.2 $872.5 81 Hume Bank NSW $45.1 $5.3 $3.7 $1,004.6 82 Credit Union SA SA $45.0 $5.0 $3.9 $927.8
68 | 2017 National Mutual Economy Report | Turnover EBIT NPAT Total Assets Rank Name State ($AUD-mil) ($AUD-mil) ($AUD-mil) ($AUD-mil)
83 Police Credit Union SA $44.8 $5.8 $4.1 $858.8 84 Common Equity Housing Ltd (CEHL) VIC $44.5 $3.3 $3.3 $787.6 85 Community First Credit Union NSW $44.0 $3.1 $2.4 $909.1 86 Central Australian Aboriginal Congress NT $41.3 $1.4 $1.4 $25.8 87 Unimutual NSW $39.4 $2.0 $1.7 $59.0 88 Wesbuilders Co-operative WA $37.8 $0.1 $0.1 * 89 QBANK QLD $37.4 $3.5 $2.5 $805.7 90 SCU NSW $37.3 $3.0 $2.3 $844.1 91 Kimberley Aboriginal Medical Services WA $35.7 ($0.5) ($0.5) $37.1 92 G&C Mutual Bank NSW $35.6 $3.3 $2.3 $879.1 93 Batlow Fruit Co-operative NSW $35.4 ($0.8) ($0.5) $16.9 94 B&E Personal Banking TAS $33.2 $4.6 $3.2 $727.9 95 Summerland Credit Union NSW $32.0 $4.7 $3.3 $630.9 96 Aboriginal & Torres Strait Islander Community QLD $32.0 $6.2 $6.2 $47.1 Health Service (ATSICHS) Brisbane 97 Phoenix Health Fund NSW $31.5 $0.4 $0.4 $25.3 98 Mount Barker Co-operative WA $29.4 $0.8 $0.7 $13.6 99 MOVE – People Driven Banking QLD $28.9 $2.8 $2.0 $590.3 100 Holiday Coast Credit Union NSW $28.8 $2.6 $1.9 $552.1
1. EBIT= earnings before interest and tax. NPAT = net profit after tax. *=not available. All values are reported in Australian $. 2. Turnover for some CMEs has included the total income received by the enterprise as a co-operative or mutual rather than the amount of income accounted for by the enterprise as a business entity. 3. Financial information has been sourced in most cases from company annual reports, and where that has not been available from IBISWorld industry reports. All care has been taken to ensure the accuracy of this data, however, it is possible that some information may be incorrect. 4. Some businesses that appeared in earlier Top 100 reports have been removed as they were unwilling to provide financial information. 5. Member-owned superannuation funds are reported in Appendix B.
69 | 2017 National Mutual Economy Report | APPENDIX B: AUSTRALIAN TOP 10 SUPERANNUATION CMEs BY ANNUAL TURNOVER, FY2015-2016
Turnover EBIT NPAT Total Assets Rank Name State ($AUD-mil) ($AUD-mil) ($AUD-mil) ($AUD-mil)
1 AustralianSuper VIC $17,540.1 $16,640.3 $15,722.8 $103,693.1 2 UniSuper VIC $8,153.0 $5,950.0 $5,496.0 $55,839.0 3 First State Super NSW $6,804.6 $3,545.0 $3,090.0 $56,558.1 4 Retail Employees Superannuation Trust (REST) NSW $6,089.1 $5,045.2 $4,697.8 $41,520.9 5 Sunsuper QLD $6,001.1 $3,153.0 $2,822.5 $37,210.9 6 Cbus Super VIC $5,542.4 $4,980.1 $4,636.1 $35,861.8 7 HESTA VIC $5,261.0 $4,930.1 $4,580.2 $35,760.4 8 Hostplus VIC $3,516.8 $3,200.4 $2,976.9 $20,165.6 9 VicSuper VIC $2,214.1 $2,060.0 $1,935.7 $16,587.5 10 CareSuper NSW $1,687.4 $1,570.9 $1,473.1 $14,254.7
1. EBIT= earnings before interest and tax. NPAT = net profit after tax. *=not available. All values are reported in Australian $.
2. Financial information has been sourced in most cases from company annual reports, and where that has not been available from IBISWorld industry reports. All care has been taken to ensure the accuracy of this data, however, it is possible that some information may be incorrect.
70 | 2017 National Mutual Economy Report | APPENDIX C: AUSTRALIAN TOP 100 CMEs BY ASSETS, EXCLUDING SUPERANNUATION FUNDS, FY2015-2016
Total Total Total Assets Total Assets Rank Name State Liabilities Equity ($AUD-mil) ($AUD-mil) ($AUD-mil) ($AUD-mil) 1 Members Equity Bank (ME) VIC $23,203.4 $22,237.4 $966.0 $2,110.1 2 CUA QLD $12,898.4 $11,984.4 $914.0 $2,177.8 3 Newcastle Permanent NSW $9,773.2 $8,895.8 $877.4 $1,999.4 4 Heritage Bank QLD $8,440.7 $7,998.6 $442.1 $320.1 5 People's Choice Credit Union SA $7,514.3 $6,981.0 $533.3 $1,694.6 6 Greater Bank NSW $5,715.3 $5,262.5 $452.8 $4,817.8 7 Teachers Mutual Bank NSW $5,543.0 $5,104.9 $438.1 $23,203.4 8 IMB Bank NSW $5,224.1 $4,915.5 $308.6 $2,495.7 9 Australian Unity VIC $4,817.8 $4,238.2 $579.5 $1,602.2 10 Beyond Bank Australia SA $4,760.7 $4,354.2 $406.5 $2,096.0 11 Bank Australia VIC $4,038.8 $3,602.8 $436.0 $1,332.9 12 P&N Bank WA $3,761.1 $2,701.1 $260.5 $408.9 13 Qudos Bank NSW $3,347.1 $3,108.7 $238.3 $178.0 14 RACQ QLD $2,495.7 $1,354.8 $1,140.8 $338.8 15 Devondale Murray Goulburn VIC $2,177.8 $1,002.1 $1,175.7 $12,898.4 16 Cuscal NSW $2,173.4 $1,923.6 $249.8 $7,514.3 17 Victoria Teachers Mutual Bank VIC $2,161.6 $1,980.3 $181.4 $9,773.2 18 CBH Group WA $2,110.1 $462.0 $1,648.1 $8,440.7 19 RACV VIC $2,096.0 $576.8 $1,519.2 $140.9 20 Avant Mutual Group NSW $2,027.0 $994.1 $1,032.9 $58.5 21 HCF NSW $1,999.4 $650.8 $1,348.6 $259.0 22 Defence Bank VIC $1,780.5 $1,630.3 $150.2 $456.5 23 HBF Health WA $1,694.6 $466.2 $1,228.3 $2,027.0 24 RAC WA WA $1,602.2 $792.2 $809.9 $87.5 25 ASG VIC $1,579.8 $1,481.7 $98.1 $199.9
71 | 2017 National Mutual Economy Report | Total Total Total Assets Total Assets Rank Name State Liabilities Equity ($AUD-mil) ($AUD-mil) ($AUD-mil) ($AUD-mil) 26 Police Bank NSW $1,555.1 $1,379.9 $175.3 $2,161.6 27 bcu NSW $1,523.1 $1,403.8 $119.3 $1,555.1 28 BankVic VIC $1,502.9 $1,348.9 $153.9 $392.6 29 QT Mutual Bank (merged with RACQ, now trading as QLD $1,434.4 $1,287.4 $146.5 $1,780.5 RACQ Bank) 30 Queensland Country Credit Union QLD $1,358.1 $1,178.9 $179.2 * 31 NRMA NSW $1,332.9 $448.9 $884.0 $575.1 32 Regional Australia Bank NSW $1,179.1 $1,080.1 $99.0 $450.7 33 Australian Military Bank NSW $1,131.8 $1,048.5 $83.3 $21.2 34 Gateway Credit Union NSW $1,036.9 $938.9 $98.0 $1,434.4 35 Hume Bank NSW $1,004.6 $937.3 $67.3 $1,502.9 36 Credit Union SA SA $927.8 $836.0 $91.8 $1,523.1 37 Community First Credit Union NSW $909.1 $830.4 $78.7 $31.5 38 G&C Mutual Bank NSW $879.1 $798.2 $80.9 $95.4 39 Unity Bank NSW $872.5 $797.3 $75.3 $482.5 40 Police Credit Union SA $858.8 $790.4 $68.5 * 41 SCU NSW $844.1 $767.7 $76.4 $48.1 42 QBANK QLD $805.7 $731.2 $74.5 $1,179.1 43 Common Equity Housing Ltd (CEHL) VIC $787.6 $96.6 $691.0 $4.3 44 B&E Personal Banking TAS $727.9 $664.3 $63.6 $15.6 45 Summerland Credit Union NSW $630.9 $577.2 $53.7 $96.2 46 Community Alliance Credit Union NSW $626.3 $585.0 $41.3 $39.5 47 Maitland Mutual Building Society (The Mutual) NSW $598.3 $558.7 $39.7 $37.7 48 MOVE – People Driven Banking QLD $590.3 $529.2 $61.1 $87.7 49 Murrumbidgee Irrigation NSW $575.1 $109.4 $465.7 $21.9 50 Holiday Coast Credit Union NSW $552.1 $511.9 $40.2 $1,131.8 51 Medical Indemnity Protection Society (MIPS) VIC $507.9 $212.8 $295.1 $59.1 52 Murray Irrigation NSW $482.5 $70.8 $411.7 $25.7 53 RAA SA SA $456.5 $229.2 $227.3 $1,036.9
72 | 2017 National Mutual Economy Report |
Total Total Total Assets Total Assets Rank Name State Liabilities Equity ($AUD-mil) ($AUD-mil) ($AUD-mil) ($AUD-mil) 54 StateCover NSW $450.7 $312.3 $138.3 $2,161.6 55 Southern Cross Credit Union NSW $421.9 $375.3 $46.6 $1,555.1 56 WAW Credit Union VIC $421.9 $394.9 $27.0 $392.6 57 Teachers Health NSW $408.9 $128.5 $280.4 $1,780.5 58 MDA National WA $392.6 $218.2 $174.3 * 59 Coastline Credit Union NSW $390.9 $358.8 $32.1 $575.1 60 ECU Australia (merged with Queensland Country QLD $340.7 $319.9 $20.8 $450.7 Credit Union) 61 GMHBA VIC $338.8 $138.7 $200.1 $21.2 62 Queenslanders Credit Union QLD $333.4 $290.2 $43.1 $1,434.4 63 Select Credit Union (merged with Encompass Credit NSW $323.2 $283.2 $39.9 $1,502.9 Union, now trading as Select Encompass Credit Union) 64 Capricorn Society WA $320.1 $169.4 $150.7 $1,523.1 65 EML NSW $316.3 $205.1 $111.1 $31.5 66 Goulburn Murray Credit Union VIC $311.9 $272.7 $39.2 $95.4 67 Horizon Credit Union NSW $307.8 $286.6 $21.2 $482.5 68 Intech Credit Union (merged with Bank Australia, now NSW $305.5 $283.8 $21.7 * trading as Intech Bank) 69 Australian Settlements Limited (ASL) NSW $299.1 $290.7 $8.4 $48.1 70 Nexus Mutual VIC $298.6 $282.6 $15.9 $1,179.1 71 The Capricornian QLD $291.8 $270.4 $21.4 $4.3 72 Encompass Credit Union (merged with Select Credit NSW $289.6 $250.5 $39.1 $15.6 Union, now trading as Select Encompass Credit Union) 73 Hunter United NSW $278.2 $254.9 $23.3 $96.2 74 CBHS Health Fund NSW $259.0 $84.3 $174.6 $39.5 75 Northern Inland Credit Union NSW $251.2 $217.3 $33.9 $37.7 76 The Mac (Macarthur Credit Union) NSW $242.4 $218.5 $23.9 $87.7 77 Warwick Credit Union QLD $240.8 $224.0 $16.8 $21.9 78 KeyInvest SA $223.5 $191.3 $32.2 $1,131.8 79 My Credit Union NSW $208.0 $177.0 $31.1 $59.1
73 | 2017 National Mutual Economy Report |
Total Total Total Assets Total Assets Rank Name State Liabilities Equity ($AUD-mil) ($AUD-mil) ($AUD-mil) ($AUD-mil) 80 Latrobe Health Services VIC $205.3 $45.6 $159.6 $2,161.6 81 Namoi Cotton NSW $199.9 $76.3 $123.5 $1,555.1 82 Coleambally Irrigation Co-operative NSW $186.5 $22.9 $163.6 $392.6 83 Orange Credit Union NSW $184.4 $159.8 $24.6 $1,780.5 84 Westfund Health Insurance NSW $182.0 $52.6 $129.4 * 85 Almondco Australia SA $179.2 $157.3 $22.0 $575.1 86 Norco NSW $178.0 $104.7 $64.2 $450.7 87 First Option Credit Union VIC $176.8 $163.7 $13.1 $21.2 88 Laboratories Credit Union (LCU) NSW $172.6 $160.3 $12.3 $1,434.4 89 Bankstown City Credit Union (merged with Unity Bank, NSW $166.7 $145.2 $21.5 $1,502.9 now trading as Bankstown City Unity Bank) 90 Dnister Ukrainian Credit Co-operative VIC $153.3 $134.0 $19.3 $1,523.1 91 Northern Co-operative Meat Company (NCMC) NSW $151.0 $61.8 $89.2 $31.5 92 Australian Friendly Society (AFS) VIC $150.0 $140.0 $10.0 $95.4 93 South West Slopes Credit Union NSW $149.2 $129.2 $20.0 $482.5 94 Central West Credit Union NSW $145.9 $127.5 $18.4 * 95 Geraldton Fishermen’s Co-operative WA $140.9 $115.0 $25.9 $48.1 96 Health Partners SA $137.4 $24.8 $112.7 $1,179.1 97 FCCS VIC $134.9 $125.8 $9.1 $4.3 98 TUH Health Fund QLD $125.1 $41.9 $83.2 $15.6 99 Health Insurance Fund of Australia (HIF) WA $118.8 $50.5 $68.3 $96.2 100 APS Benefits Group VIC $118.4 $112.5 $5.9 $39.5
1. This list contains businesses ranked by total assets not turnover and includes several firms that did not appear in the Top 100 list by turnover (Appendix A), while some of the firms listed there do not appear in this list. All values are reported in Australian $. 2. Financial information has been sourced in most cases from company annual reports, and where that has not been available from IBISWorld industry reports. All care has been taken to ensure the accuracy of this data, however, it is possible that some information may be incorrect. 3. Some businesses that appeared in earlier Top 100 reports have been removed as they were unwilling to provide financial information.
74 | 2017 National Mutual Economy Report | APPENDIX D: AUSTRALIAN TOP 100 CMEs, TOP 10 PER STATE AND TERRITORY, BY TURNOVER, EXCLUDING SUPERANNUATION FUNDS, FY2015-2016
WA
Turnover Total Assets Rank Name State Top 100 Rank ($AUD-mil) ($AUD-mil)
1 CBH Group WA $3,270.6 $2,110.1 1 2 Capricorn Society WA $1,542.9 $320.1 4 3 HBF Health WA $1,512.1 $1,694.6 5 4 RAC WA WA $676.7 $1,602.2 9 5 Geraldton Fishermen’s Co-operative WA $372.2 $140.9 19 6 Western Australian Meat Marketing Co-operative WA $280.5 $87.5 24 (WAMMCO) 7 Health Insurance Fund of Australia (HIF) WA $162.6 $118.8 39 8 P&N Bank WA $149.7 $3,761.1 40 9 MDA National WA $88.5 $392.6 54 10 Capricorn Mutual WA $46.5 $59.1 77
Total $8,102.4 $10,286.9
VIC
Turnover Total Assets Rank Name State Top 100 Rank ($AUD-mil) ($AUD-mil)
1 Devondale Murray Goulburn VIC $2,777.7 $2,177.8 2 2 Australian Unity VIC $1,420.7 $4,817.8 6 3 Members Equity Bank (ME) VIC $1,221.6 $23,203.4 7 4 RACV VIC $584.8 $2,096.0 10 5 GMHBA VIC $524.5 $338.8 14 6 Bank Australia VIC $167.4 $4,038.8 36 7 Latrobe Health Services VIC $165.8 $205.3 37 8 Medical Indemnity Protection Society (MIPS) VIC $111.0 $507.9 48 9 ASG VIC $94.8 $1,579.8 51 10 Victoria Teachers Mutual Bank VIC $90.5 $2,161.6 52
Total $7,158.8 $41,127.1
75 | 2017 National Mutual Economy Report | Nsw
Turnover Total Assets Rank Name State Top 100 Rank ($AUD-mil) ($AUD-mil)
1 HCF NSW $2,465.0 $1,999.4 3 2 NRMA NSW $557.6 $1,332.9 11 3 Teachers Health NSW $543.8 $408.9 12 4 Norco NSW $541.1 $178.0 13 5 Newcastle Permanent NSW $396.0 $9,773.2 17 6 Independent Liquor Group Distribution Co- NSW $371.6 $58.5 20 operative 7 CBHS Health Fund NSW $360.7 $259.0 21 8 Avant Mutual Group NSW $281.5 $2,027.0 23 9 Namoi Cotton NSW $279.7 $199.9 25 10 Teachers Mutual Bank NSW $274.7 $5,543.0 26
Total $6,071.8 $21,779.7 sa
Turnover Total Assets Rank Name State Top 100 Rank ($AUD-mil) ($AUD-mil)
1 People's Choice Credit Union SA $407.3 $7,514.3 16 2 RAA SA SA $329.4 $456.5 22 3 Almondco Australia SA $238.6 $179.2 29 4 Beyond Bank Australia SA $229.6 $4,760.7 32 5 Health Partners SA $136.8 $137.4 43 6 The Community Co-Operative Store (Nuriootpa) SA $68.5 $48.1 67 7 CCW Co-operative SA $62.6 $4.3 69 8 Master Butchers Co-operative SA $59.0 $39.5 72 9 Lenswood Apples SA $46.2 $25.7 78 10 Credit Union SA SA $45.0 $927.8 82
Total $1,623.0 $14,093.5
76 | 2017 National Mutual Economy Report | qld
Turnover Total Assets Rank Name State Top 100 Rank ($AUD-mil) ($AUD-mil)
1 RACQ QLD $1,031.3 $2,495.7 8 2 CUA QLD $520.1 $12,898.4 15 3 Heritage Bank QLD $393.2 $8,440.7 18 4 Queensland Country Credit Union QLD $163.2 $1,358.1 38 5 TUH Health Fund QLD $149.0 $125.1 41 6 QT Mutual Bank (merged with RACQ, now trading as QLD $74.0 $1,434.4 60 RACQ Bank) 7 Institute for Urban Indigenous Health QLD $49.0 $21.9 75 8 QBANK QLD $37.4 $805.7 89 9 Aboriginal & Torres Strait Islander Community QLD $32.0 $47.1 96 Health Service (ATSICHS) Brisbane 10 MOVE – People Driven Banking QLD $28.9 $590.3 99
Total $2,478.0 $28,217.3 nt
Turnover Total Assets Rank Name State Top 100 Rank ($AUD-mil) ($AUD-mil)
1 Central Australian Aboriginal Congress NT $41.3 $25.8 86
Total $41.3 $25.8 tas
Turnover Total Assets Rank Name State Top 100 Rank ($AUD-mil) ($AUD-mil)
1 St. Lukes Health TAS $103.0 $108.7 49 2 RACT TAS $61.1 $96.2 71 3 B&E Personal Banking TAS $33.2 $727.9 94
Total $197.3 $932.8
77 | 2017 National Mutual Economy Report | NOTES
78 | 2017 National Mutual Economy Report | NOTES
79 | 2017 National Mutual Economy Report |